Spunweb Nonwoven Ltd IPO

Our Company and SIPL are dependent on limited number of suppliers for supply of raw materials and we have not made any long-term supply arrangement or agreement with our suppliers. In an eventuality where our suppliers are unable to deliver us the required materials, at a competitive price, in a time-bound manner it may have a material adverse effect on our business operations and profitability. The Majority of our raw materials are sourced from few key suppliers. Discontinuation of the operations of such suppliers may adversely affect our ability to source raw materials at a competitive price.

Our Company derive revenue from diversified customers whereas SIPL derives a significant portion of our revenue from a limited number of customers. Our inability to acquire new customers or loss of all or a substantial portion to any of our major customers, for any reason and/or continued reduction of the business from them, could have a material adverse impact on our business, results of operations, cash flows and financial condition.

Underutilization of the installed capacities at our Company and SIPL may impact adversely on our growth and future profitability.

We have significant working capital requirements and the objects of the Issue include funding working capital requirements of our Company and our wholly owned subsidiary SIPL, which is based on certain assumptions and estimates. Any failure in arranging adequate working capital for our operations may adversely affect our business, results of operations, cash flows and financial conditions.

We derive a significant portion of our revenue from operations from domestic sales which exposes us to risks specific to Indian geographies and market.

Our Company has negative cash flows from its investing activity and financing activity, details of which are given below. Sustained negative cash flow could adversely impact our business, financial condition and results of operations.

We are exposed to competition from both domestic and international manufacturers and new entrants and consequent pricing pressures could have a material adverse effect on our business growth and prospects, financial condition and results of operations.

Inventories and trade receivables form a major part of our current assets. Our inability to maintain a balance between optimum inventory levels and our product offering at our factory and failure to manage trade receivables may adversely affect our business, results of operations and financial condition.

Our historical performance is not indicative of our future growth or financial results, and we may not be able to sustain our historical growth rates or effectively execute our strategies, which may adversely affect our business and financial results.

Public health crises, such as pandemics, may disrupt operations and create fluctuating demand for hygiene and healthcare products, adversely impacting our business operations and financial performance.